January 08, 2025

No big day Dongfeng Renault joint venture will fall


Initially in 2013, Renault, which had been tangled for nearly 10 years, finally had an exact timetable. A new Sino-French joint-venture vehicle construction project will begin on the west side of the Sanhuan Road in Hanyang District, Wuhan City, Hubei Province and on the south side of the Hancai Expressway.


According to the plan, in early 2013, Dongfeng Group and Renault-Nissan Alliance will formally announce the establishment of Dongfeng Renault Automobile Co., Ltd. The plant is located in Wuhan, with an annual production capacity of 150,000 passenger vehicles and a total investment of 7.2 billion yuan. However, the project still needs the approval of the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Industry and other relevant ministries.


At present, the Dongfeng Renault project has already been submitted to the National Development and Reform Commission, and the reporter recently received a response from people close to Dongfeng. “It is fast, but it has not received approval from the National Development and Reform Commission.” The person responsible for the release of the news by Dongfeng Motor Company stated that he was not involved in the project and it is therefore not convenient to express any opinions.


Not big wedding


If you get the NDRC approval, Dongfeng Renault will sign up and register the joint venture early this year, and it is expected to start production in 2015. Previously, the key reason for the Dongfeng Renault project encountering “closed doors” at the National Development and Reform Commission was the resettlement of Sanjiang Renault. If the Sanjiang Renault was properly placed, the biggest obstacle to approval would naturally be resolved.


Another important message of this release is that Dongfeng Renault's factory has settled down in Wuhan. The “Wanfeng Renault Automobile Co., Ltd.’s 150,000 passenger car construction project” publicized on the Internet in December last year mentioned the pre-planning of the Wuhan plant, in addition to the traditional four workshops (welding, stamping, painting, and assembly) and engines. Outside the production line, Dongfeng Renault will also establish a research and development center and supporting public and auxiliary environmental protection projects. Among them, Wuhan Dongfeng Renault's 150,000 passenger car production project will produce SUVs and MPVs after its completion.


However, when the reporter called the relevant person of Sanjiang Renault, his reply was “according to the caliber of Dongfeng Group”.


Ten years entangled


As early as 2003, Renault delivered a plan for the joint venture with Dongfeng Group to manufacture Renault. In 2004, Dongfeng Renault Automobile Co., Ltd. was established. Afterwards, Renault-Nissan CEO Ghosn repeatedly claimed that Renault will be made in China and will choose Dongfeng Group as the only partner.


The direct reason for the reorganization of Sanjiang Reynolds was that the Renault-Dongfeng Group joint venture to produce passenger cars had been rejected by the National Development and Reform Commission. It is reported that at that time, the National Development and Reform Commission stated: “Renault must first properly resolve the Sanjiang Reynolds reorganization issue before discussing other joint ventures.”


In 2000, the just-aligned Renault and Nissan also started a joint venture with Dongfeng to prepare for the entry into China and form a "Golden Triangle" with Dongfeng. Dongfeng hopes to adopt the same kind of cooperation with Dongfeng as the limited cooperation with Renault on commercial vehicle and passenger vehicle projects. Renault insisted on the establishment of a separate joint venture for passenger vehicles. In addition, there are big differences between the two sides in the site selection. In the end, Nissan and Dongfeng first completed a joint venture, and Renault China was shelved.


After the establishment of Dongfeng Nissan, Dongfeng had proposed to introduce Renault models through the existing Dongfeng Nissan platform, but Renault did not catch cold.


"We tend to establish a new joint venture with Dongfeng Group, rather than relying on Dongfeng Nissan's platform." Nissan-Renault CEO Ghosn once said.


In the past 10 years, the Sanjiang Renault JV’s Chinese shareholder has been replaced by Sanjiang Aerospace as the Aerospace Brilliance and the Hunan Torch. Even if it is on the brink of collapse, Renault has not withdrawn from Sanjiang Renault. Since 2004, the factory has entered a seven-year production shutdown. According to local sources, the site of Sanjiang Reynolds Xiaogan factory has even been sold to real estate developers.


It was not until 2011 that this stalemate took a turn for the better. The reporter learned from the head of the office of General Manager of Sanjiang Renault that Renault had given up equity in Sanjiang Renault for free, but there were differences in the placement of Renault in Sanjiang. Sanjiang hopes to retain the qualification of the entire vehicle and change it into a commercial vehicle. Dongfeng and Renault are not satisfied with the plan.


At the end of last year, Dongfeng and Renault had reached a new resettlement plan for Sanjiang Renault. Sanjiang Renault abandoned the entire vehicle, its vehicle qualification was inherited by the soon-to-be established Dongfeng Renault, and Sanjiang Renault will become the exclusive supporting factory for engines and transmissions produced by the Dongfeng Renault joint venture. In November last year, Renault China Executive President Chen Guoxuan also clearly told reporters that Renault’s domestic production quality cooperation with Dongfeng will be backdoored by Sanjiang Renault.


At this point, the most critical issues left over by history have finally been properly resolved. The Dongfeng Renault joint venture has already eliminated the biggest obstacle.



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